Lakeland Industries, Inc. reported its financial results for the fiscal second quarter ended July 31, 2026. The company announced net sales of $50.1 million for the quarter, a decrease of 4.5% compared to the prior year period. On a sequential basis, sales increased 5.7% from $47.4 million in the first quarter of fiscal 2027.
Gross profit for the quarter was $18.5 million, resulting in a gross margin of 37.0%. This represents an improvement from 35.9% in the prior-year quarter and 31.4% in the first quarter of fiscal 2027. The company reported an adjusted EBITDA excluding foreign exchange of $2.7 million, which more than doubled sequentially from $1.1 million in the first quarter.
Revenue was segmented by geography and business unit. Fire Products generated $26.1 million in revenue, up 12% sequentially and 2% year-over-year, representing 52% of total net sales. Fire Services revenue increased 78% year-over-year to approximately $3.5 million. Industrial revenue was $24.0 million, down 10.8% on a reported basis, though the company noted that excluding the divestiture of the High Performance FR and HiViz product lines in March 2026, Industrial revenue increased approximately 3%.
Geographically, U.S. sales were $21.3 million, down 3.6% year-over-year. Sales in Europe were $12.4 million, down 17.9% from the prior year, while Asia sales increased 27% to $4.7 million.
Operational highlights included the resolution of a lease matter in Monterrey, Mexico, resulting in a $1.9 million gain, and a non-cash goodwill impairment charge of approximately $3.2 million related to LHD Germany. The company also noted that inventory ended the quarter at $74.9 million, down $15.3 million year-over-year. As of July 31, 2026, the company had borrowings of $24.9 million outstanding under its revolving credit facility, with an additional $15.1 million of available credit.
Lakeland management stated that the company is focused on converting demand and backlog into revenue, improving gross margins, and simplifying areas of the business that are not producing acceptable returns. The company also secured multiple tender and contract awards across 9 countries globally, including notifications of an intended award under the UK National Fire Chiefs Council National Firefighter PPE Framework with a total potential value of up to £220 million over seven years.
Lakeland President and CEO Jim Jenkins and CFO J. Calven Swinea will host a conference call on Wednesday, September 9, 2026, at 4:30 p.m. Eastern Time.
